NatWest has made a minorty investment in rewards credit card startup Yonder.
Founded by three Clearscore alumni and launched in 2022 with £20 million in startup funding, Yonder aims to tackle the problems expats with no credit history face when applying for a credit card in the UK. The firm uses open banking data to build a more nuanced, personalised picture of its customers’ spending habits and suitability for credit and offers a suite of rewards-based offers to cardholders.
NatWest plans to collaborate with Yonder to bring their insights and approaches to customer experience, engagement and reward to its 19 million-strong customer base.
Ladi Greenstreet, head of strategic investments at NatWest Group, explains: “Today’s consumer wants financial experiences that are personal, easy, and that seamlessly integrate into their daily lives. Our investment in Yonder reflects our belief in delivering better lifestyle experiences with financial tools that resonate with customers’ personal goals and aspirations. We’re looking forward to exploring new ways to deliver rewarding and responsible financial interactions that align with our customers’ evolving needs.”
Yonder raised £23.4 million in September at a valuation of more than £100 million. This investment followed the startup’s Series A fundraise of £12.5m in equity and £50m in debt in April 2023, which enabled Yonder to double its headcount, expand its rewards platform into new categories, and launch city-based experiences in Manchester, Birmingham, Bristol and Bath alongside London.
Tim Chong, founder & CEO of Yonder, says: “We’re thrilled to welcome NatWest as an investor in Yonder. Their expertise and insights will be invaluable as we continue to grow and scale our platform. Together, we can redefine the future of consumer credit and deliver tailored financial services that meet the unique needs of our users.”
Driven by NatWest’s Innovation and Partnerships team, the minority stake in Yonder follows recent strategic investments in businesses such as Serene, an an early-stage AI platform dedicated to tackling financial vulnerability.
The bank is currently in the market for more fintech pacts, saying that it is actively seeking investment opportunities from seed to series B startups that are aligned to the bank’s strategic ambitions.